Conclusion, Investment Implications, Strategy
Teleflex Incorporated (TFX) is amid favorable conditions to resume its November 2020 Strategic advance from major underlying support near $388.10, which is currently being tested. A sustained rise above this area would target an additional 14% rise to $449.38 per share. This is an Asbury Value trade idea.
Analysis and Rationale
Teleflex Incorporated (TFX) designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. The company was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.
The rightmost green highlights in Chart 1 below show that TFX has since mid-May been testing its 200-day moving average, currently at $388.10 while hovering at monthly (our Tactical time period) oversold extremes. The other green highlights show that previous similar oversold extremes in late January, late October 2020, and late September 2020 helped to trigger the resumption of the stock’s overall upward trend. These conditions set up a low-risk buying opportunity because, If that major uptrend is still valid, this is where it should resume.
Table 1
A sustained rise above the $388.10 area would indicate this is indeed the case and would target an additional 14% rise to $449.38 per share.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $384.89 area, a long entry price of $395.60 would provide a 1:5.0 risk/reward ratio (risking $1.00 to make $5.00) with an initial risk of 2.7%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.